Hardide PLC Trading Update (6890N)

TIDMHDD

RNS Number : 6890N

Hardide PLC

26 September 2019

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

26 September 2019

Hardide plc

("Hardide", "the Group" or "the Company")

Year End Trading Update

Hardide (AIM: HDD), the developer and provider of advanced surface coating technology, is pleased to provide an update on trading and expectations for the financial year ending 30 September 2019.

Early indications of strong demand across the Company's target markets have continued:

- Sales to the Company's major flow control customer in North America have more than doubled

   -              Large project-based orders have been received for an oil and gas operator 
   -              Increase in the coating of industrial diamonds used in the oil and gas industry 
   -              Increased sales to the precision engineering sector 

Accordingly, the Company expects (subject to audit and year-end adjustments) to report revenues of around GBP5.0 million, ahead of expectations. Reflecting the sales mix and continuing investment, EBITDA is expected to be in line with expectations.

Fitting-out of the Company's new UK premises has commenced and the timing of the relocation to the new facility is currently on track to be completed during September 2020. As previously announced, three new coating reactors have been ordered, with two of these to be installed at the new UK site and one at the Martinsville site in the USA. The existing three reactors in Martinsville are currently working at full capacity.

The Company expects to report its preliminary results for the year to 30 September 2019 on or around 9 December 2019.

Philip Kirkham, CEO of Hardide plc, commented:

"We are pleased to announce the second consecutive year of record sales revenue. Revenue for the second half year is expected to be approximately 13% ahead of the first half and the full year approximately 9% ahead of the last financial year. It is also pleasing that demand is spread across a continually broadening range of customers, sectors and applications. Demand remains strong and we are optimistic about further growth in the year ahead."

 
 
  Enquiries: 
Hardide plc 
 Philip Kirkham, CEO                          Tel: [phone] 
 Robert Goddard, Chairman                                       830 
 Jackie Robinson, Communications Manager 
IFC Advisory                                  Tel: [phone] 
 Graham Herring / Florence Chandler                             630 
finnCap                                       Tel: [phone] 
 Henrik Persson / Kate Bannatyne / Matthew                      500 
 Radley 
 

Allenby Capital

Jeremy Porter / James Hornigold Tel: [phone]

Notes to editors:

www.hardide.com

Hardide develops, manufactures and applies advanced technology tungsten-carbide coatings to a wide range of engineering components. Its patented technology is unique in combining in one material, a mix of toughness and resistance to abrasion, erosion and corrosion; together with the ability to coat accurately interior surfaces and complex geometries. The material is proven to offer dramatic improvements in component life, particularly when applied to components that operate in very aggressive environments. This results in cost savings through reduced downtime and increased operational efficiency. Customers include leading companies operating in oil and gas exploration and production, valve and pump manufacturing, precision engineering and aerospace industries.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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September 26, 2019 02:00 ET (06:00 GMT)